Analysts Outlines How Investors React To Various Crypto News
The crypto world is evolving, and it has recorded many landmark achievements in the past few years. More investors are getting used to how to things are being done in the industry. Bitcoin’s inconsistency has been a significant concern for some crypto enthusiasts, while DeFi tokens’ rise has brought so much smile to many investors’ faces.
The industry has equally witnessed disappointments, crises, and overwhelming periods. GameSpot’s crisis often comes to mind. XRP’s troubled period is far from over following the charges leveled against its owners by the United States Security Exchange Commission (US SEC). Some saddened events of online theft and wallets’ leakage were also experienced, discouraging many people from entering the crypto space. But how does cryptocurrency users and traders respond to the beautiful and ugly sides of the crypto space? Binance has a conclusive answer.
Binance reveals users’ reactions as events unfold in the industry
Binance, one of the world’s best crypto-based digital exchange platform, take an in-depth look into the crypto investors’ behavior, motivation, preferences, and performance so far in 2021. After examining the behavior of over 61,000 crypto users in more than 178 countries, Binance sums up its findings in a well-documented report tagged “2021 Global Crypto User Index report.”
According to the report, 55% of all crypto traders and enthusiasts purchase digital assets for long term Investments, while 31% are involved in the crypto market for short-term purposes. Likewise, 38% possess cryptocurrencies due to their lack of trust in the present financial system in their respective countries. The survey further revealed that 52% of crypto users see their investments as an alternative source of income. In comparison, 15% solely rely on their crypto investments for daily bread because it is the primary income source.
Interestingly, 97% of surveyed users have complete trust in the crypto world, tipping it to become one of the most used payment methods in the nearest future. Expectedly, Bitcoin (BTC) has the highest number of investors after the report revealed that 65% of customers owned a considerable amount of digital assets.
Only a few crypto investors stake or lend their coins
Binance’s research and findings equally reveal only 22% of crypto users stake or lend their tokens for more yield; 11% use their digital asset for payments, while 39% of surveyed users don’t know anything about their coins. Furthermore, the report reveals that 63% of users won’t buy crypto coins unless there is a disposable income to spend. The company proceeded to unveil that 60% of users store their tokens on crypto exchanges.
The stats backing Defi as the most improved crypto sector suggests that 66% of all surveyed users often use their Defi applications — 54% of the overall users are from Southeast Asia. In terms of trust and freedom, the research claims that 17 out of 20 markets have little trust (less than 50%) in local institutions. The survey’s final result was published on different social media platforms such as Twitter, Instagram, WeChat for more publicity.